Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $120,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 2021? v a- No effect b- Increases for $10,000 C- Increases for $35,000 d- Increases for $20,000 11 and the cost to complete product Z is $20, what is the amount that should be
Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $120,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 2021? v a- No effect b- Increases for $10,000 C- Increases for $35,000 d- Increases for $20,000 11 and the cost to complete product Z is $20, what is the amount that should be
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 16P: (Appendix 8.1) Inventory Write-Down Frost Companys inventory records tor the years 2019 and 2020...
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